Sequoia's new war chest of $1.3 billion to fund Indian, SEA start-ups
Sequoia believes India and SEA will be the hub for big technology companies of the next decade
- Jul 7, 2020,
- Updated Jul 7, 2020 1:32 PM IST
Sequoia LP has announced a fresh commitment of $1.35 billion in two new Sequoia India funds to invest in India and South East Asia (SEA) - one is a $525 million venture fund and the other a $825 million growth fund. "The start-up ecosystem in both India and SEA has come a very long way in the last few years; the market gets deeper and the crop of founders, and their achievements, become more impressive each year," says Shailendra Singh, MD, Sequoia Capital in a blog post.
Sequoia India, which now operates seed, venture and growth funds, is betting on India and SEA to be home to a number of big technology companies in the next decade with combined GDP of the region expected to cross $14 trillion, and mobile internet users likely to cross 1.5 billion by 2030.
Acknowledging that the COVID-19 pandemic has brought about difficulties in the start-up ecosystem, Shailendra says this was a time for reflection. "During periods of exuberance, investors have rushed in to invest large amounts of capital into start-ups. This has, expectedly, resulted in short term over-funding and hyper competition amongst start-ups," he adds.
But this has been followed by down cycles, cost cutting and negative sentiment. "These cycles have enhanced start-up mortality and left many founders, investors and start-up employees scarred," he adds . While the current crisis has undoubtedly changed the course of start-ups, many founders have also become more prudent.
"The leadership teams inside our start-ups are more aligned, focused and determined than ever before," says Singh. Sequoia's announcement comes at a very critical time since the overall funding sentiment has not been upbeat with investors becoming more guarded. Also, the government's crackdown on Chinese apps and regulatory hurdle for Chinese investment have been a dampener.
Big Chinese players such Alibaba and Tencent have many investments in Indian startups. Alibaba has invested in Paytm, Zomato; Tencent in Swiggy, Byju's. Sequoia has invested in Decacorn, Byju's , BankBazaar, Citrus Pay, Grofers, Carz24, Car Dekho.
Also read: Sequoia Capital to invest $1.35 billion in Indian, Southeast Asian startups
Sequoia LP has announced a fresh commitment of $1.35 billion in two new Sequoia India funds to invest in India and South East Asia (SEA) - one is a $525 million venture fund and the other a $825 million growth fund. "The start-up ecosystem in both India and SEA has come a very long way in the last few years; the market gets deeper and the crop of founders, and their achievements, become more impressive each year," says Shailendra Singh, MD, Sequoia Capital in a blog post.
Sequoia India, which now operates seed, venture and growth funds, is betting on India and SEA to be home to a number of big technology companies in the next decade with combined GDP of the region expected to cross $14 trillion, and mobile internet users likely to cross 1.5 billion by 2030.
Acknowledging that the COVID-19 pandemic has brought about difficulties in the start-up ecosystem, Shailendra says this was a time for reflection. "During periods of exuberance, investors have rushed in to invest large amounts of capital into start-ups. This has, expectedly, resulted in short term over-funding and hyper competition amongst start-ups," he adds.
But this has been followed by down cycles, cost cutting and negative sentiment. "These cycles have enhanced start-up mortality and left many founders, investors and start-up employees scarred," he adds . While the current crisis has undoubtedly changed the course of start-ups, many founders have also become more prudent.
"The leadership teams inside our start-ups are more aligned, focused and determined than ever before," says Singh. Sequoia's announcement comes at a very critical time since the overall funding sentiment has not been upbeat with investors becoming more guarded. Also, the government's crackdown on Chinese apps and regulatory hurdle for Chinese investment have been a dampener.
Big Chinese players such Alibaba and Tencent have many investments in Indian startups. Alibaba has invested in Paytm, Zomato; Tencent in Swiggy, Byju's. Sequoia has invested in Decacorn, Byju's , BankBazaar, Citrus Pay, Grofers, Carz24, Car Dekho.
Also read: Sequoia Capital to invest $1.35 billion in Indian, Southeast Asian startups